Question: Problem 2: A mutual fund manager has a $40 million portfolio with a beta of 1.00 . The risk-free rate is 4.25%, and the market

Problem 2: A mutual fund manager has a $40 million portfolio with a beta of 1.00 . The risk-free rate is 4.25%, and the market risk premium is 6.00%. The manager expects to receive an additional $60 million, which she plans to invest in additional stocks. After investing the additional funds, she wants the fund's required and expected retum to be 13.00%. What must the average beta of the new stocks be to achieve the target required rate of return

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